Topic: How To Invest

Power Growth Investor Hotline – Friday, March 20, 2020

Article Excerpt

PINDUODUO INC., $33.57, is a buy for aggressive investors. The company (ADR symbol PDD on Nasdaq) offers a Chinese shopping app that brings groups of buyers together to win deeper discounts. The company’s shares have held up well in the current market downturn. That’s because its e-commerce model is ideally suited for Chinese consumers at a time when stores in many areas are closed. Consumers can still order and get goods online, with packages left at front doors to avoid person-to-person contact. All payments are made online. Pinduoduo is like a mix of Groupon and a discount store. It uses group buying and social networking via the popular WeChat mobile messaging app to meet the minimum group size mandated by the merchant within a 24-hour time period. In theory that leads to all participants enjoying a better deal. The customer is able to get a better price on already-cheap products and the merchant is able to generate more sales. If the minimum…

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